harlekkin, 29 Sep 2015This isn't just about technology, it's about economics and stakeholder returns, sorry to burst... moreyou kind of have a point not in the short term but it might happen in the long term but I agree with you its impossible for such an investment to be made at this time. anyway thank you for reminding that 50 states that join together are greater than 1 country whose size and population is equal to one state but just for fun divide that 50000 among the 50 states and you get something like 1000 which means the better comparison is Kenya vs a single USA state and it will hold its own end then. in fact it may turn out to be richer than some states.....en I don't think you are belittling Kenya, am just trying to get on your nerves and I will stop now.
Love the tech but the problem is, a lot of people shop at Walmart in Canada and USA and after their recent upgrades, their payment terminals still don't have NFU. A lot of places still don't have them because they don't think it is a cost effective thing to upgrade until the device breaks or else. World wide, many countries are still implementing the basic system of terminal payment so I doubt you will be travelling with only your phone instead of your wallet. What worried me is what happens if your phone gets lost? Somebody can still use it for a while. That fingerprint thing is so easy to dupe.
The ad looks good and promising for samsung pay, unfortunately, I don't and will never purchase a samsung phone to test it out.
roy10, 29 Sep 2015well they also said their will be the same about the television that it's too expensive for Af... moreThis isn't just about technology, it's about economics and stakeholder returns, sorry to burst your bubble.
Kenya's GDP per capita is $3200 with an HDI (human development index) of .535 (147th) and the US GDP per capita is $56,000 with an HDI of .914, 5th world rank.
As Kenya progresses and improves the quality of life of its citizens, the more likely it would be that such investments would work there. But not now, and probably not in the short-term future.
Again, I'm talking Apple & Samsung Pay here, and am by no means berating or belittling Kenya. As you said, mobile payment services are widely available, but the goal is to transform the nation - not to earn massive amounts of revenue.
Jovan Leon, 29 Sep 2015I didn't, I figured you're the same person. I can figure out that much.Haha, sorry, I was just trying to be polite and not implying that.
Jovan Leon, 29 Sep 2015I don't think the return for Samsung will only come from transactions, in fact the early retur... moreYeah, of course I get that. ROI for an initiative however focuses on the return which the investment ITSELF will make, as a direct contribution to revenue/profits. That's how most banks/companies work.
30mil may sound much, but at a population of merely 50 million, that's not even US$2/person. Say that interchange fee revenue is half that of the US at 0.1c/$, they are only earning US360,000 per year in revenue. Not even worth mentioning.
As for the US, the big 3 card companies accumulate spend of US$2 trillion per year, or US$166 billion per month - all card transactions. Assuming the current mobile wallet penetration is 4%, that's US$6.6 billion.
Samsung really needs to shake up the market in the US to get more than 4% on its own, and then it'll pay off after just over 1.5 years.
harlekkin, 29 Sep 2015Oh I'm with you, I'm not saying it's bad at all, the opposite. I think it's also a grand achie... moreI don't think the return for Samsung will only come from transactions, in fact the early return will mostly come from the added interest the Samsung pay generates to Samsung top of the line phones. I think just a couple of millions of extra sales because of the S pay would be enough to cover the initial investment. And since the MST based terminals are still all over the places around us, I think the interest over S pay will spread like wildfire. Besides, if South Korea alone manage to spend $30 million on a single month, I don't think it would take long for US to reach a billion. And when UK, China and others have joined in, Sammy will definitely be making some serious profit.
well they also said their will be the same about the television that it's too expensive for Africans add the mobile phone which was expensive at the time and every Electronics advance but mark my word it will not only come to Kenya but the whole world not to day not tomorrow but one day it will come to Kenya and to suggest that it won't is just sheer naivity.
the world is changing and as Samsung pay becomes more common it will reach Kenya
that's just how technology spreads through diffusion. for now Samsung is trying to win over apple fans hence the launch in the USA but in 5 to 6 years time it maybe found in cheap phones and spread of all parts of the world
Jovan Leon, 29 Sep 2015I get your point. But my point is, the Samsung solution is superior and it's already usable in... moreAlso, don't get confused, my nickname is AussieinHK also, since I can only sign-in using Google in the work environment :)
roy10, 29 Sep 2015no I don't think I know Samsung will and already has invested in Africa and specifically Kenya... moreI'm talking about Apple Pay and Samsung Pay specifically, and no, there's no way Samsung will launch that service in Kenya out of all places.
You realise that Samsung Pay at this very moment is only compatible with VERY EXPENSIVE Samsung devices, right?
Get YOUR facts straight please.
Jovan Leon, 29 Sep 2015I get your point. But my point is, the Samsung solution is superior and it's already usable in... moreOh I'm with you, I'm not saying it's bad at all, the opposite. I think it's also a grand achievement that they could turn a sleeve into technology that sits inside a mobile phone. I just can't figure what made Samsung invest US$250 million in a company for this patent alone. For the mobile division, it's a big chunk of cash still.
MST is also subject to the same transaction limits as NFC, which in AUS is AUD100 and in the UK GBP20, and US$25 in the US, which means there need to be a LOT of transactions for Samsung to make up for the cost, to just break even. You can use PayWave above the limits of course, but it then requires a PIN or signature which defeats the purpose.
In the US I believe, average interchange fees are $1 per $100, so 1%. Say that Samsung gets 20c out of each $ from the banks (Apple wants 30c for every $1 in Australia), to make it a round number, they would need 1.25 billion transactions worth $100 each to break even. Correct? Now, the average transaction size for credit cards is $66 according to Visa, but probably much lower for PayWave/Mobile Wallet payments.
More interestingly, for AMEX, VISA & MC, the yearly US$ spend is around US$2 trillion.
Samsung needs about 6-7% of that market share in the first year to break even.
There is of course Korea, but it's a much smaller spend and I'm not sure what interchange fees they collect.
And as I said, all those transactions would theoretically need to be MST transactions if the technology wanted to pay itself off. Ambitious and rewarding if they can manage to roll-out the technology fast and to many more countries, but they've taken a LONG time to even launch in the US.
"Instead of relying solely on NFC and potentially requiring additional hardware from merchants, like the latter two, Samsung Pay also supports MST-based transactions". What does it mean "solely on NFC" and "also supports MST" ? Does it supports both technologies?
aussiehk, 29 Sep 2015Now, do you seriously think that Apple or Samsung will invest their technology in Kenya? No. P... moreno I don't think I know Samsung will and already has invested in Africa and specifically Kenya.
May 8 Â– Samsung Electronics Friday opened the largest ultra-modern Samsung Experience Store in East Africa, sitting on a 5000 square meters area in the heart of the CBD, on Monrovia Street, Nairobi.
Â• AKidÂ’s Zone that will help children interact with our devices and grow with technology in mind.
Â• A Customer Service centre inside the store.
Â• It has a zone for young adults i.e. Gaming Zone and VR Experience Zone.
Â• It has a Premium lounge for our customers to be trained as they have a soft drink.
It has 30 such stores all over the country and plans to expand to 250 stores by 2016
Financial services access hit 67pc in 2007 I am pretty sure it is over 85% now so stop generalizations and you will see we ain't at 30 pc
Don't forget mpesa is an electronic banking system where you receive your salary pay bills and of cause deposit money and it has a savings section where you are not charged any fees.and m pesa is connected to a bank account So out of ten Kenyans 7 are likely to have bank accounts and hence atm cards.
But you are right apple will not develop for africa and we don't really care because it's too expensive to be a choice especially when it has such poor specifications. and as for this being the attempt of the third world well its being exported to Europe and you may soon see it in the USA if it's successful enough.
Get your facts right. And remember while statistics can be validated internally and externally they are simply prone to bias and depends on the biased interpretation of the researcher.
see you when you reach our level of mobile payment
Antymalware, 29 Sep 2015U blind Fandroid! MST will in 1-2 years become obsolete!!!! So well done for implementing some... moreI'm pretty sure you are the blind one. You said 1-2 years, by that time it become obsolete, almost everyone will be holding a new phone with new technology. It's idea is to make it convenient for people to pay now.
Anonymous, 29 Sep 2015This article reads like a promotion... :-\ I fail to see how adding MST hardware is going "... moreIt may be an old technology, but it is still being used almost everywhere, at least everywhere I've been. Besides, Samsung tends not to make old things obsolete, like Apple does. And "the new MacBook forces change by offering a single USB Type-C port" has nothing to do with this. Having C-ports is OK, having just one is definitely not OK, and definitely stupid, I don't know what they were thinking. And if that's the future, I wanna live in the past, you know in the time when we had lots of ports, we could use a usual mouse, a joystick, or anything we wanted while also recharging our laptop, those were the best days. :D
aussiehk, 29 Sep 2015I'm not saying it's not big, but the same number could be 80% next year and 100% the year afte... moreI get your point. But my point is, the Samsung solution is superior and it's already usable in the US and other countries will soon follow. And if you want NFC, you're covered too. So however you look at it, it's a win for people using Samsung flagships. Just like its virtual reality feature, for the moment, it's unrivalled. But unlike Samsung Pay, the VR feature will remain unrivalled for quite a while.
As long as it have VISA and MasterCard. That is pretty universal where I come from.
Jovan Leon, 29 Sep 2015Last time I checked 50% is still a big number. That is one of two! And that rate of adoption o... moreI'm not saying it's not big, but the same number could be 80% next year and 100% the year after, in which case I'm not sure how Samsung's investment is to pay off.
The problem with the "world" argument is that Samsung and Apple IMHO will not bother investing in developing markets, or markets where interchange fee revenue isn't profitable.
The other issue I think that needs to be considered is that shop owners, who don't offer NFC capable hardware, wouldn't know anything about MST or how to apply it. This could be awkward for a customer to explain and for the effort involved in doing that, I'd rather just grab my card an pay the traditional way.
aussiehk, 29 Sep 2015Well, there's always research. By end of 2015, half of the 12mil terminals in the US will b... moreLast time I checked 50% is still a big number. That is one of two! And that rate of adoption only happens in the US and some specific countries, while the world is a much bigger place. I believe in most countries in the world, the NFC adoption won't even reach 50% by the end of next year! So would you bet with 50-50 chance every time you're about to use mobile payment if yours will be accepted or not? Or be almost 100% sure using Samsung pay? And that 50% is due by the end of this year, that's three months to go my friend, and that's still an 'if' also, if they can make the adoption that fast.